Tip of the Month for August 2002

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So you want to win the lottery...
An Oregon couple hit the big one and decided to take the 20-year payout. Then they decided to sell their future earnings at a discount, winding up with $4 million. They reported the money as a long-term gain. However, the court didn't agree. Their earnings were taxed as ordinary income. Ouch. Nothing like a little sticker shock with your tax return.

So you want to argue with the IRS ...

The IRS, as part of their recent "customer" service changes, now boasts that they will settle disputes with individuals and small businesses in no more than 40 days. That's a promise.

Sell your land back to Mother Nature ...

...and you can deduct up to 25% of your profits. If you sell your land to be used for conservancy to a local, state, government or a federal agency, or even a non-profit conservancy organization, and you've owned it for more than five years, you can deduct up to 25% of your capital gains. Tweet tweet.

Keeping an eye on your work ...

The IRS ruled recently that redial keratotomy and LASIK surgery are both qualified medical expenses. This means that if a worker is reimbursed for the procedures, the employee won't be taxed on the money. See?


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